California Duo Pleads Guilty in $16M Medicare Hospice Scam & Money Laundering Operation

Two California residents have pleaded guilty to their roles in a major Medicare fraud and money laundering scheme that exploited the hospice care system and defrauded taxpayers of nearly $16 million. The multi-year scam, based in Los Angeles, involved a web of sham hospice companies, stolen identities, and the movement of millions in illegal proceeds through fraudulent bank accounts.

Karpis Srapyan, 35, and Susanna Harutyunyan,

39, both of Winnetka, California, admitted their involvement in a complex healthcare fraud conspiracy that falsely billed Medicare for services that were medically unnecessary or never provided. To conceal the scheme, the group used fake documentation, including the identities of deceased doctors and foreign nationals, to establish bank accounts and lease properties.

The money laundering scheme involved transferring more than $3.2 million through multiple accounts to disguise the source of the funds. Harutyunyan knowingly used fraudulent proceeds for personal expenses, including the purchase of a BMW, while living in homes filled with counterfeit documents and IDs.

This case is part of a growing crackdown on hospice fraud in California, with the Justice Department aggressively targeting fraudulent billing and financial crimes in the healthcare sector. As investigators uncover increasing links between healthcare fraud and money laundering networks, enforcement agencies are stepping up efforts to safeguard Medicare funds and hold fraudsters accountable.

Srapyan faces sentencing on 6 October and could receive up to 20 years in prison for conspiracy to commit health care fraud and money laundering. Harutyunyan, who also faces possible deportation, will be sentenced on 17 November and faces a maximum of 10 years.

This case highlights the intersection of financial crime, identity theft, and abuse of public healthcare systems. The Justice Department’s Health Care Fraud Strike Force continues to target fraud rings exploiting Medicare, and warns that those engaged in money laundering and medical billing scams will be prosecuted to the fullest extent of the law.

Read the press release here.